A tax collection agreement is an arrangement where one government collects taxes on behalf of another. Some provinces collect property taxes for municipalities as part of a centralized property tax system, reducing administrative burden on smaller municipalities. Education taxes are often collected by municipalities on behalf of provincial governments or school boards through similar arrangements. Collection agreements specify which entity sends bills, receives payments, handles arrears, and bears collection costs. Centralized collection can improve efficiency but reduces municipal control over customer service and payment flexibility. The alternative is each municipality operating independent tax collection systems, which may be efficient for large municipalities but burdensome for small ones.